International sports agency MP & Silva has been wound up following a hearing at the UK’s High Court of Justice.
A petition to dissolve the business – majority owned by Chinese parent companies Everbright and Baofeng – was brought by the French Tennis Federation (FFT). The case was adjourned when it reached court last week, before being heard on Wednesday.
The FFT had informed the judge of the case that MP & Silva owed an outstanding debt of more than US$6.6 million to the federation, with the money originally due on 30th June. An extension was arranged with guarantees of payment by 25th July. However, no money was paid, leading to the submission of the petition on 24th August.
The High Court case relating to the FFT was heard in accordance with the UK’s 1986 Insolvency Act, with the FFT’s costs to be paid out of the business’ assets of MP & Silva, which is to be dissolved. The company’s remaining assets and income will be handed to creditors.
The relationship between the agency and the FFT stretches back to 2012, when the two parties agreed a five-year partnership for the European media rights to the French Open at Roland Garros. That agreement was subsequently extended until 2017, before a further addition to the arrangement saw the deal extended until 2021.
However, the association has soured with MP & Silva’s economic strife, with the agency missing scheduled rights-fee payments. The company has lost a host of big contracts in recent months after it that emerged Serie A, Italian club soccer’s top flight, is set to take the company to court over unpaid rights fees totalling nearly €38 million (US$44.4 million).
The Scottish Professional Football League (SPFL) also severed its ties with the agency to team up with Infront, while Premier League soccer giants Arsenal also announced that they have torn up their contract with MP & Silva in favour of selling their media rights directly to global broadcasters.
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